In today’s show we are going to look at why compound interest is so overhyped and if compounding interest is not the key to kingdom, what is? In the financial universe, compound interest has been sold as the Holy Grail by financial professionals. Letting your money compound over time has been the single most well-known piece of conventional wisdom in personal finance.
I would agree that compounding has its advantages in the short term but there are financial challenges when you truly look into compounding in the long term. Your money earns more money, compounding over time, interest produces more interest and your money grows in an exponential manner.
That is very powerful and I am on board with this and I love it when my money and wealth is compounding – it is fantastic, your money is working for you and if you read Rich Dad Poor Dad, you learned that you want your money working for you. So I am not saying that compounding interest is a bad thing – I am however going ask you to look at the disadvantages of it as well to fully understand this concept.
733: Vasu Kakarlapudi: The Cashflow Doctor
My guest in this episode is Dr. Vasu Kakarlapudi. Vasu is an entrepreneur who specializes in ear, nose, throat, head & neck surgery, commercial real estate, and personal growth. His passion to pay his knowledge and experience forward led to the formation of Apta Properties – whose mission is to extend those passive income opportunities…
732: Chris Prefontaine: Real Estate In The Trenches
My guest in this episode is Chris Prefontaine. Chris is the best-selling author of Real Estate On Your Terms and The New Rules of Real Estate Investing. A real estate investor with over 28 years experience in the field, Chris is the founder of Smart Real Estate Coach and host of the Smart Real Estate…
731: Mark Podolsky: Land Investing Cashflow
My guest in this episode is Mark Podolsky (a.k.a. The Land Geek). Mark has been buying and selling raw land full-time since 2001. He has completed over 5,500 land deals and his company, Frontier Equity Properties, has an A+ rating with the Better Business Bureau. He is also the author of Dirt Rich, the ultimate…